Addus HomeCare Announces First Quarter 2015 Results
For the quarter, net service revenues increased 14.3% to
"We are pleased to report solid first quarter financial results and a new purchase agreement for an acquisition that, once consummated, will provide Addus entry into the large managed care market in
"While we do not control the pace of the transition of our client populations to MCOs across our markets, we continue to work with them to improve the healthcare of the dual eligible population with a corresponding lower cost of care. We are very excited to have recently entered into project engagements with MCOs in three states to assist these MCOs with, among other things, locating and engaging new members and providing initial health risk assessments (HRAs) for their dual eligible beneficiaries. These MCOs recognize that Addus' widely distributed workforce of nearly 19,000 home care personnel offers an experienced team well positioned locally to locate members and provide HRAs for this population.
"In addition to our efforts to drive organic growth, we continue to position Addus for future growth through our acquisition strategy. Following our first quarter acquisition of Priority Home Health Care in
South Shore currently serves
Addus had
Hires
Heaney continued, "After a thorough search process, I am pleased to announce that
Mr. Klink has over 30 years of in-depth financial experience from his work at both public and private companies. From
Non-GAAP Financial Measures
The information provided in this release includes adjusted diluted earnings per share from continuing operations and adjusted EBITDA, which are non-GAAP financial measures. The Company defines adjusted diluted earnings per share as diluted earnings per share, adjusted for M&A expenses, incremental SOX 404 compliance expense and tax benefit from worker opportunity tax credits. The Company defines adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expense and stock-based compensation expense. The Company has provided, in the financial statement tables included in this press release, a reconciliation of adjusted diluted earnings per share to diluted earnings per share and a reconciliation of adjusted EBITDA to net income, in each case, the most directly comparable GAAP measure. Management believes that adjusted diluted earnings per share and adjusted EBITDA are useful to investors, management and others in evaluating the Company's operating performance, to provide investors with insight and consistency in the Company's financial reporting and to present a basis for comparison of the Company's business operations among periods, and to facilitate comparison with the results of the Company's peers.
Conference Call
Addus will host a conference call to discuss its results for the first quarter today beginning at
A live broadcast of
Forward-Looking Statements
Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may be identified by words such as "continue," "expect," and similar expressions. Forward-looking statements involve a number of risks and uncertainties that may cause actual results to differ materially from those expressed or implied by such forward-looking statements, including the consummation of acquisitions, anticipated transition to managed care providers, expected benefits and costs of acquisitions and dispositions, management plans related to dispositions, the possibility that expected benefits may not materialize as expected, the failure of the business to perform as expected, changes in reimbursement, changes in government regulations, changes in Addus HomeCare's relationships with referral sources, increased competition for
About Addus
Addus is a comprehensive provider of home and community-based services that are primarily provided in the home and focused on the dual eligible population. Addus' services include personal care and assistance with activities of daily living, and adult day care. Addus' consumers are individuals who are at risk of hospitalization or institutionalization, such as the elderly, chronically ill and disabled. Addus' payor clients include federal, state and local governmental agencies, managed care organizations, commercial insurers and private individuals. For more information, please visit www.addus.com.
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Condensed Consolidated Statements of Income and Cash Flow Information (amounts and shares in thousands, except per share data) |
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Income Statement Information: |
For the Three Months |
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2015 |
2014 |
||
Net service revenues |
$ 81,915 |
$ 71,683 |
|
Cost of service revenues |
59,989 |
53,015 |
|
Gross profit |
21,926 |
18,668 |
|
26.8% |
26.0% |
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General and administrative expenses |
17,153 |
14,403 |
|
Depreciation and amortization |
1,146 |
495 |
|
Total operating expenses |
18,299 |
14,898 |
|
Operating income |
3,627 |
3,770 |
|
Total interest expense, net |
173 |
154 |
|
Income before taxes |
3,454 |
3,616 |
|
Income tax expense |
1,292 |
1,262 |
|
Net income |
$ 2,162 |
$ 2,354 |
|
Net income per share: |
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Basic |
$ 0.20 |
$ 0.22 |
|
Diluted |
$ 0.19 |
$ 0.21 |
|
Weighted average number of common shares outstanding: |
|||
Basic |
10,947 |
10,850 |
|
Diluted |
11,162 |
11,110 |
|
Cash Flow Information: |
For the Three Months |
||
2015 |
2014 |
||
Net cash (used in) provided by operating activities |
$ (904) |
$ 2,670 |
|
Net cash (used in) by investing activities |
(4,981) |
(1,484) |
|
Net cash (used in) provided by financing activities |
(82) |
214 |
|
Net change in cash |
(5,967) |
1,400 |
|
Cash at the beginning of the period |
13,363 |
15,965 |
|
Cash at the end of the period |
$ 7,396 |
$ 17,365 |
ADDUS HOMECARE CORPORATE AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Amounts in thousands) |
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March 31, |
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2015 |
2014 |
||
Assets |
|||
Current assets |
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Cash |
$ 7,396 |
$ 16,965 |
|
Accounts receivable, net |
74,370 |
59,042 |
|
Prepaid expenses and other current assets |
6,158 |
4,795 |
|
Deferred tax assets |
8,508 |
8,326 |
|
Total current assets |
96,432 |
89,128 |
|
Property and equipment, net |
8,075 |
3,897 |
|
Other assets |
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Goodwill |
66,088 |
59,986 |
|
Intangible assets, net |
11,540 |
8,538 |
|
Investment in joint venture |
900 |
900 |
|
Other assets |
255 |
93 |
|
Total other assets |
78,783 |
69,517 |
|
Total assets |
$ 183,290 |
$ 162,542 |
|
Liabilities and stockholders' equity |
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Current liabilities |
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Accounts payable |
$ 2,995 |
$ 3,715 |
|
Current portion of capital lease obligations |
993 |
- |
|
Current portion of contingent earn-out obligation |
1,000 |
- |
|
Accrued expenses |
38,295 |
38,834 |
|
Deferred revenue |
- |
5 |
|
Total current liabilities |
43,283 |
42,554 |
|
Long-term liabilities |
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Deferred tax liabilities |
5,845 |
3,441 |
|
Capital lease obligations, less current portion |
2,425 |
- |
|
Contingent earn-out obligation, less current portion |
1,120 |
- |
|
Total long-term liabilities |
9,390 |
3,441 |
|
Total liabilities |
52,673 |
45,995 |
|
Total stockholders' equity |
130,617 |
116,547 |
|
Total liabilities and stockholders' equity |
$ 183,290 |
$ 162,542 |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES Key Statistical and Financial Data (Unaudited) |
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For the Three Months Ended March 31, |
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2015 |
2014 |
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General: |
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Adjusted EBITDA (in thousands) (1) |
$ 5,400 |
$ 4,453 |
|
States served at period end |
22 |
23 |
|
Locations at period end |
132 |
128 |
|
Employees at period end |
18,844 |
16,648 |
|
Home & Community: |
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Average billable census - same store |
31,102 |
29,497 |
|
Average billable census - acquisitions |
1,908 |
- |
|
Average billable census total |
33,010 |
29,497 |
|
Billable hours (in thousands) |
4,754 |
4,236 |
|
Average billable hours per census per month |
48.0 |
47.9 |
|
Billable hours per business day |
75,468 |
67,243 |
|
Revenues per billable hour |
$ 17.23 |
$ 16.92 |
|
Percentage of Revenues by Payor: |
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State, local and other governmental programs |
77.7% |
91.0% |
|
Managed Care |
18.3 |
4.4 |
|
Commercial |
0.9 |
1.1 |
|
Private duty |
3.1% |
3.5% |
ADDUS HOMECARE CORPORATION AND SUBSIDIARIES ADJUSTED EBITDA(1) (Unaudited) |
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For the Three Months |
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2015 |
2014 |
||
Reconciliation of Adjusted EBITDA to Net Income: |
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Net income |
$ 2,162 |
$ 2,354 |
|
Interest expense, net |
173 |
154 |
|
Income tax expense |
1,292 |
1,262 |
|
Depreciation and amortization |
1,146 |
495 |
|
M&A expenses |
291 |
65 |
|
Stock-based compensation expense |
336 |
123 |
|
Adjusted EBITDA |
$ 5,400 |
$ 4,453 |
|
Reconciliation of Diluted Earnings per Share to Adjusted Diluted Earnings per Share: (2) |
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Diluted earnings per share |
$ 0.19 |
$ 0.21 |
|
M&A expenses |
0.02 |
- |
|
SOX 404 compliance expense |
0.02 |
- |
|
Tax benefit from worker opportunity tax credits |
0.01 |
- |
|
Adjusted diluted earnings per share from continuing operations |
$ 0.24 |
$ 0.21 |
|
(1) |
We define Adjusted EBITDA as earnings before interest expense, taxes, depreciation, amortization, M&A expenses and stock-based compensation expense. Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. |
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(2) |
We define Adjusted diluted earnings per share as diluted earnings per share, adjusted for M&A expenses, incremental SOX 404 compliance expense and tax benefit from worker opportunity tax credits. Adjusted diluted earnings per share is a performance measure used by management that is not calculated in accordance with generally accepted accounting principles in the United States (GAAP). It should not be considered in isolation or as a substitute for net income, operating income or any other measure of financial performance calculated in accordance with GAAP. |
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SOURCE
Dennis Meulemans, Chief Financial Officer, Addus HomeCare, (630) 296-3400, dmeulemans@addus.com; or Scott Brittain, Corporate Communications, Inc., (615) 324-7308, scott.brittain@cci-ir.com